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Check out this old comment I posted: https://news.ycombinator.com/item?id=7031842 https://news.ycombinator.com/item?id=7031842 I described a hack my old emplo

• mjolk 12y ago
  I know about that hack, but I'm not sure I'd advise others to follow suit. You end up spending a non-trivial amount of money in fees and there's definitely a legal and time cost involved. IIRC, there's a couple of other issues that are pretty trivial for a law firm to smooth out, but not something you'd want to deal with if you're paying your legal costs per engagement or hour. For what it's worth: "this runs counter to the general principal of SV where they are pro-Corp." I believe this is because in California, there's a minimum tax of $800 on LLCs, so you might as well become a big boy corporation and not eat the 13.3% profit fee, get lower taxes (and/or or tax "hacks" (cheats)), and (especially pertinent to VCs) be able to be publicly traded.